FURUKAWA CO., LTD.
Medium Term Business Plan Announcement, Financial Results Briefing for the Fiscal Year
Ended March 2023
May 30, 2023

[Number of Speakers]

3
Minoru Nakatogawa
Hiroyuki Sakai
Ryohei Akutagawa

President and Representative Director
Managing Director
Manager, Public & Investor Relations
Section, Corporate Planning Department

Presentation
Nakatogawa: My name is Nakatogawa from FURUKAWA CO., LTD. Thank you very much for taking time outof your busy schedule today to attend our mid-term business plan and financial results presentation.
Since our founding in 1875, we have undergone significant changes, and today, our core business is machineryand materials. We are working to enhance our investor relations, IR, activities so that investors can better
understand our company. This briefing is now streamed live online, and it has been so since May 2022. Thankyou.

Today, as you have just seen, I will explain in the order of one to five, focusing on the mid-term business plan.
Please refer to the financial results briefing material for the financial results of the fiscal year ended March
31, 2023.

First, we will review the mid-term business policy 2022.
We did not announce numerical targets for the second phase of Vision for 2025, from FY2020 to FY2022, due
to the high degree of uncertainty in the medium to long term business environment and the difficulty ofmaking such assumptions. Therefore, we decided to view the second phase as a good opportunity to focus ona quick recovery of our group's performance, and we promoted the strengthening of our structure and tackled
priority issues, including the machinery business, which we positioned as our core business.
In the final year of the second phase, FY2022, operating profit was JPY9 billion, and ROE was 6.2%, bothrecovering to the levels before the COVID-19 disaster.

The bubble chart here shows a comparison of performance in FY2016, the base year when Vision for 2025
was developed, FY2019, the final year of the first phase, and FY2022, the final year of the second phase.
In the core machinery business, the industrial machinery segment and UNIC segment saw lower profits from
FY2019. However, the rock drill segment achieved a V-shaped recovery in business performance bystrengthening and restructuring its overseas marketing capabilities, resulting in a significant increase in profit.
The metals segment terminated its entrusted smelting contract with Onahama Smelting and Refining Co., Ltd.
The Company has reached a point of drastic review and change of its entrusted copper smelting business.

This is the management philosophy system of our group and the roadmap for realizing it. Please take a lookat it later.

This is the Group's value-creation process. Based on its management philosophy, the Group has evolved anddeveloped its copper mine development technology into a variety of technologies, with machinery andmaterials at the core of its business.
Among these, we have positioned the machinery business as our core business, and through marketing
management that incorporates a CSV perspective, we aim to create corporate value and social value andcontinue to be a company that is needed by society.

Vision for 2025 divides the phase into three periods by backcasting, and we have been working to realize thisvision. The third phase of our mid-term business plan 2025 is positioned as a period for finalizing therealization of Vision for 2025, and we will solidify the foundation for the future beyond Vision for 2025. We
aim to achieve operating profit of approximately JPY13 billion and ROE of approximately 8% as management
indices.

Under the mid-term business plan 2025, we will strengthen and expand our efforts to achieve cost of capitaland stock price conscious management. Since our P/B ratio is less than 1x, we will improve our ability to create
corporate value in order to achieve sustainable growth and increase corporate value over the medium to longterm under the mid-term business plan 2025. To this end, we will work to achieve a ROE of around 8% and adiminishing cost of capital. At the same time, we will strive to achieve a P/B ratio of over 1x as soon as possible
by further enhancing appropriate information disclosure and active dialogue with investors, and by gaining asufficient reputation from the market.
Regarding the goal of achieving ROE of around 8%, there is a growth strategy to promote sustainable
expansion of the machinery business and improvement of profitability in the business and product portfolios
within each business segment, as well as identification of low-profit businesses and products. Through thesemeasures, we aim to achieve consolidated operating profit of approximately JPY13 billion in FY2025, as wellas to improve capital efficiency by reducing strategic shareholdings, and to streamline and optimize equity
capital through shareholder return measures.
For reduction of capital costs, with regard to sustainability initiatives and investments in non-financial capital,
the Company will disclose appropriate information on the reduction of non-financial risks and engage in active
dialogue with investors. At the same time, we will seek to reduce financial risk through the pursuit of an
optimal capital structure centered on our rating strategy.

As a growth strategy, we will concentrate management resources on the machinery business, which is
positioned as our core business, to improve returns.
The Group's basic policy is to implement marketing management that incorporates a CSV perspective. The
Group's strategy is centered on contributing to the creation of social value through the development of social
infrastructure and the realization of a safe, environmentally friendly, and prosperous society.
The growth strategies for the machinery business and each segment are as described. As we will explain in
more detail later, we aim to invest 70% of our accumulated capital expenditures in the machinery business,with the machinery business accounting for more than 50% of consolidated net sales and more than 80% ofconsolidated operating profit in FY2025.

Next is a summary of the earnings plan and capital policy. The revenue plan will be discussed in more detaillater.
Regarding capital policy, we will aim to establish a solid financial base that will enable us to raise funds without
being influenced by financial conditions. We will strive to improve our financial soundness, envisioning a D/E
ratio of 0.5x level, interest-bearing debt to EBITDA ratio of 3x level, and a financial level that would allow
Japanese rating agencies to raise their issuer ratings from the current BBB-plus to A-minus or higher in FY2025.
With respect to shareholder returns, we will consider increasing dividends and paying interim dividends, andin principle, aim for an annual dividend of JPY50 per share or higher with a consolidated total return on capitalat least 3%.
The Company will consider share buybacks and cancellations as appropriate, taking into account trends instock prices, capital efficiency, cash flows, and other factors, with a target annual share buybacks amount ofapproximately JPY1 billion.
With regard to strategic shareholdings, each year, we review the appropriateness of continuing to hold sharesbased on a comprehensive assessment of the cost of capital and other factors. We will continue to disclose
the ratio of strategic shareholdings to consolidated net assets as an indicator of progress in reducing suchshareholdings.

Our basic policy for reviewing our business portfolio is to visualize and identify our business portfolio frommultiple perspectives and implement rational business decisions. The business portfolio is visualized andidentified by using a bubble chart to project the corporate value creation power, the compound annual growthrate of sales, and the corporate value created in a year as three management evaluation indicators for eachbusiness segment. At the same time, we will conduct a four-quadrant analysis based on growth potential andcorporate value creation power to make rational business decisions.
The status of the review is as stated. The implementation of a fundamental review of the entrusted copper
smelting business in the metals segment is one of the results of the priority issues addressed in the mid-termbusiness policy 2022 as part of the business structure reform to build a solid earnings base that is not overly
dependent on the performance of the metals segment.

With a basic policy of strengthening efforts to improve ROE, we will make individual investment decisions,paying attention to profitability in light of investment risk and cost of capital, while strengthening efforts toimprove efficiency and profitability.
In addition, by operating a business portfolio management system that utilizes the cost of capital, we will
pursue overall optimization of management resource allocation to achieve sustainable growth and enhance
corporate value over the medium to long term.
The target consolidated operating profit for FY2025 is about JPY13 billion, and ROE is to be about 8% byimproving profitability and efficiency, although leverage will decrease due to reduction of interest-bearing
debt.

The bubble chart shows a performance comparison of the FY2025 project image with the FY2022 actuals.
For the earnings picture for FY2025, on a consolidated basis, although the average annual growth rate of net
sales will decline due to lower sales in the metals segment, operating profit is expected to increase due tohigher sales and profit in the machinery business.

The bubble chart here shows the breakdown by segment.

In the machinery business, which is positioned as our core business, the industrial machinery segment and
UNIC segment are expected to increase in terms of growth rate, operating margin, and operating profit, while
the rock drill segment is expected to maintain high profitability and increase operating margin and operating
profit, although the growth rate will be lower.
In the materials business, operating margin and operating profit are expected to increase in the electronics
segment and the chemical segment.

The pie chart here shows the operating profit composition ratio by business segment.
The machinery business is expected to expand from 66% or JPY6 billion in FY2022, the final year of the second
phase, to 81% or JPY10.7 billion in FY2025.
Operating profit is expected to be approximately doubled on a consolidated basis compared to the base year,
FY2016. The machinery business is expected to expand approximately threefold.

We will now explain our business strategies for each segment. First is the machinery business.
The industrial machinery segment will further strengthen its engineering capabilities and promote crossdepartmental initiatives and DX. It aims to break away from being a mere machinery manufacturer and build
a business foundation in the domestic market by pursuing SDGs and working on infrastructure development
projects that contributes to solving social issues such as disaster prevention and disasterprevention/mitigation.
As priority issues, pumps and material machinery will work to improve its earnings base through stockbusiness by strengthening product competitiveness, promoting proposal-based sales to win orders for section
plant construction projects, and utilizing customer information management to enhance services. We will also
work to create demand and promote sales of enclosed hanging conveyors, SICON.
This bubble chart on the lower right visualizes how the FY2025 image will change compared to the FY2021
actuals for each business. Profitability is on the X-axis, growth is on the Y-axis, and the size of the bubble
indicates the size of profit.
Pumps will increase due to higher growth and profitability. Material machinery will increase due to higher
profitability despite lower growth. Profitability of belt conveyors will remain flat, but growth and profits to be
increased. Although the profitability of steel structures and pumping facilities will decline, the growthpotential will improve, resulting in an increase in both sales and profit.

This section describes the market environment, main measures, and intended results of the business andproducts shown in the bubble chart.
In pumps, market needs for renewal of aging facilities, energy conservation, and longer service life are
expected. As for slurry pumps, we will introduce a new high-efficiency slurry pump, a strategic machine,targeting the nonferrous and chemical industries, where stock business earnings are expected. We will
promote the reinforcement of the sales structure in the Chugoku and Shikoku regions with the aim ofreplacing other companies.
In addition to further capturing the eastern Japan area, where we have a proven track record in pump facilities,
we will work to expand our market share in the western Japan area. As an outcome we aim to achieve, wewill contribute to our customers' energy savings through higher efficiency and lower running costs throughlonger service life.
In the material machinery business, based on the market environment of aging and renewal demand, theCompany will strive to expand its market share and increase its stock by cultivating new customers in thewestern Japan area by utilizing new screens and crushers, which are strategic machines, and by replacing
them with machines from other companies.
We will also use IoT technology to promote section plant project proposal sales for the purpose of productivity
improvement and rationalization, as well as enhance services focusing on value creation and satisfaction the
product brings to the customer. The results we aim to achieve will contribute to our customers' productivity
improvement and stable operation of their production facilities.
The market environment for the contractor business is characterized by an increasing trend toward
construction for national land resilience and disaster prevention/mitigation measures. We expect growth in
the future, as belt conveyors are gaining recognition as an alternative to dump trucks for transporting earthand sand, and inquiries are on the rise.
In the belt conveyor business, the Company will work to acquire orders and further inquiries for projects
currently in the planning stage, such as new dam construction and renewal, river flood control, and tunnel

construction. At the same time, we will promote our enclosed hanging conveyor, SICON, as a problem-solving
method for the transportation of earth and sand and aim to procure and produce parts domestically.
In steel structures, we will stabilize business earnings through stable orders for steel bridges and sales
expansion in the steel segment. As a desired outcome, the belt conveyor will contribute to the realization ofsafe and environmentally friendly transportation of earth and sand.

Next, the rock drill machinery segment's basic strategy is to build a business model that achieves customer
success throughout the product lifecycle, the FRD model.
A key issue is the establishment of an FRD model in Japan. In strengthening the life cycle support business, it
is to strengthen sales of parts and consumables. Commercialization of a support program for blast hole drills
and establishment of a trade-in resale business for tunnel drill jumbos and hydraulic crawler drills will be
pursued.
We will also strive to reduce costs and strengthen competitiveness through centralized sales and production.
Overseas, we will cultivate the North American market for large blast hole drills and strengthen thedevelopment of hydraulic attachment drills as frontline machines for the creation of the Southeast Asian
quarry market. In Japan, we will strengthen sales in the quarry market, concentrate on sales of hydrauliccrushers and demolition equipment in the Tokyo metropolitan area to cultivate the demolition equipment
market. In terms of production, we will work to reduce costs, enhance quality, and shorten lead times throughconcentrated production.
Please see the bubble chart at the bottom right. Compared to FY2021 results, blast hole drills, hydraulicbreakers, hydraulic crushers, tunnel drill jumbos, and auxiliary parts will increase profits due to improved
growth and profitability. Growth and profitability of maintenance services are expected to benefit from thebusiness strategy in FY2025 and beyond.

In the domestic market, we are working to develop the demolition market in the Tokyo metropolitan area byadding semi-automatic drilling functions to our hydraulic crawler drills and strengthening sales of large andsuper-large hydraulic breakers, against a backdrop of a shortage of operators due to the falling birthrate andaging population, the increasing size of demolition equipment, and safety measures for tunnel construction.
In the area of hydraulic crushers, we will concentrate on sales of small-size crushers for recycling aggregatesto road construction companies.
In tunnel-related products, we will strengthen sales of unmanned and labor-saving products such as fully
automatic drill jumbos and rock bolt installation machines. By automating and mechanizing our products, wewill contribute to the realization of highly efficient and safe operations for our customers.
In overseas markets, demand is strong in North America due to economic stimulus measures andinfrastructure investment, while demand for urban development continues in Europe despite a slowdown ingrowth. Southeast Asia is expected to shift drilling products to hydraulic in line with GDP expansion.
Against the backdrop of such a market environment, our main measures in North America include
concentrated sales of large blast hole drills and strengthening sales by establishing a base in the westernregion to deepen the market for large models, which accounts for about 80% of the market.
In Europe, we will strive to expand our market share by strengthening and expanding our dealer network in
the four market-leading countries of France, the UK, Italy, and Germany.
In Southeast Asia, the Company will promote the superiority of its hydraulic attachment drill, which will be
the first machine to replace pneumatic machines, and will launch a small to medium sized hydraulic crawler
drill under development in 2025 which will create a way to the quarry market and shift it to hydraulic in
Southeast Asia.
In LCS, life cycle support, the Company aims to establish an FRD model in Japan in order to capture theincreasing demand for services that will improve the skills of workers and the demand for parts in the regions
where its products operate.

In addition, as measures to strengthen parts sales, we will review parts prices and overseas distributor
contracts, and improve stock business sales skills.
In the maintenance service business, we will reconsider the maintenance system for hydraulic breakers andhydraulic crushers, and we will promote maintenance proposals by purpose for strengthening preventive
maintenance of hydraulic crawler drills, proposals that meet customer objectives such as safety, quick
response, and investment extension.
We will also work to develop business models such as commercialization of hydraulic crawler drill support
programs, intangible services, and subscriptions. We will contribute to the realization of customer successthrough these and other technical proposals.

Next, the UNIC segment aims to secure stable earnings from domestic sales and increase earnings fromoverseas sales, and to strengthen competitiveness by increasing product efficiency, adding value, andimproving the service system. Our basic policy is to work to strengthen our product, sales, and service
technology capabilities overseas.
In Japan, our priority issues are to enhance competitiveness by increasing the functionality and added valueof our UNIC cranes and UNIC carriers, and to expand sales of mini-crawler cranes and other products that do
not depend on trucks. Overseas, we will work on the development of large UNIC cranes and new mini-crawler
cranes, expand our sales network, and strengthen the sales capabilities of our dealers. In addition, we will
strengthen the development system to respond to the electrification of trucks and promote research anddevelopment. We will also promote further automation, improve quality, reduce costs, and strengthen ourservice system at the Sakura Works.
Please see the bubble chart at the bottom right. Compared to FY2021 results, profitability of UNIC cranes will
decline in Japan, but growth potential will improve, and profits will increase due to higher sales. Overseas,
both growth and profitability are expected to improve, and profits are expected to increase. Mini-crawler
cranes and UNIC carriers are expected to increase profit by improving growth and profitability.

In the domestic market environment, although truck production is expected to recover in the near term, there
are concerns about intensifying price competition, labor shortages due to the declining birthrate and aging
population and shrinking market size as a result of growing interest in decarbonization, including
electrification-ready products.
As measures against this, we will strengthen direct sales of UNIC cranes and UNIC carriers, expand sales of
UNIC-only products, and respond to the shift to electrification of vehicles. In mini-crawler cranes, we will
expand sales of high value-added products such as battery type and disassembled type, as well as develop
new markets by focusing on target customers. In ocean cranes, marine cranes, we will strengthen our contacts
with existing customers and promote new development. Through these measures, we will contribute to therealization of safe, efficient, and energy-efficient work at diverse sites.
The overseas market environment is characterized by increased demand for infrastructure development,
growth in the rental market, increased demand for labor-saving machinery and multifunctional productspecifications, and uncertain economic conditions. Major measures by region include expanding sales of large
and super-large UNIC cranes in Southeast Asia, East Asia, the Middle East, and Oceania, and developing a
network of dealers. In North America, sales of mini-crawler cranes for rental use will be increased. In Europe,
we will strive to expand our market share by strengthening the sales force of our dealers.
In product development, we will continue to expand our lineup of large and super-large machines. We willbuild win-win relationships with dealers in each country and contribute to the improvement of customer
satisfaction.

Next is the materials business. The basic strategy of the electronics segment is to increase earnings throughbusiness expansion of strategic products.
The key issues are to strengthen sales of aluminum nitride ceramics by increasing production capacity, and todevelop and commercialize special optical material products and expand sales of diffractive optical elements(DOEs) for laser processing in the optical components business. In high-purity metallic arsenic, we will
establish a stable supply system to respond to the market as a category leader. For coil, we are working to
expand earnings by developing and expanding sales in growth areas.
The market environment in the electronics segment is expected to see growing demand for heat-dissipating
materials for semiconductor manufacturing equipment and other applications, as well as expansion in themarket for high-quality laser processing. Our analysis shows that the semiconductor market will deterioratein the short term but will recover gradually due to increased demand for 5G communications, sensors, andother products.
As key priorities, we will implement measures such as the early start-up of facilities with a 1.6-fold increase inproduction capacity for aluminum nitride ceramics, consideration of further investment to increase
production, and development of differentiated products. In optical components, DOE aims to adopt mass
production for laser processing and to stabilize earnings by consolidating bases. In high-purity metallic arsenic,
we will respond to the recovery in demand through preventive maintenance of facilities and efforts to securestable raw materials. Through these efforts, we will contribute to the enhancement of the functionality of ourcustomers' electronic devices.

In the chemicals segment, the basic strategy is to expand earnings from existing products and foster andexpand newly developed products.
In the market environment, the domestic chemical products market is shrinking in general due to the declining
population, but demand for batteries and related electronic components is growing along with the shift toEVs and automation of automobiles, etc. Our analysis shows that demand for servers and other equipment
will grow as ICT innovation leads to further networking.
Under such circumstances, we will strengthen promotion of our differentiation of high-quality sulfuric acidfor battery applications, for which demand is growing. In cupric oxide, we will increase the capacity of
production facilities and expand sales in response to rising demand for package substrates used in servers andother products. In the area of metallic copper powder, we aim to expand sales channels for newly developed
products, moving on from the development of samples to full-scale adoption as soon as possible, as well as
for applications other than electrical conductivity, such as multilayer ceramic capacitors, MLCCs.
Through these measures, we will contribute to the realization of an environmentally friendly and prosperous
society.

In the metals segment, the basic strategy is to optimize the entrusted copper smelting business. We will focus
on appealing for profitability and stabilization of the entrusted copper smelting business.
The Company terminated its entrusted smelting contract with Onahama Smelting and Refining Co., Ltd. on
March 31, 2023. By strategically reducing the size of its operations and drastically cutting unprofitable exports,
the Company has reached a point of drastic review and change of its entrusted copper smelting business.
The table below shows the performance impact between the fiscal year ended March 31, 2023, and thecurrent year's forecast. With the termination of the aforementioned entrusted smelting contract, production
volume is expected to decrease significantly, resulting in a JPY36.6 billion decrease in net sales. Operating
profit for the fiscal year ended March 31, 2023, was JPY1.2 billion due to an increase in profit from metal pricemargin, but operating profit based on actual performance, excluding metal price fluctuations, was JPY90
million. For the current fiscal year, we are forecasting JPY0.5 billion, and a comparison of operating profit
excluding the variable portion will show an improvement in profit of approximately JPY0.4 billion.
Finally, we will discuss the real estate business. Our basic strategy is to effectively utilize the real estate weown, including securing stable earnings from the Muromachi Furukawa Mitsui Building, COREDO Muromachi
2, and utilization of the former site of the Furukawa Osaka Building.
As we disclosed yesterday, the company decided to sell a part of our property in the site of the Furukawa
Osaka Building, and use the proceeds from the sale to lease a hotel and some residences to be built on thesite.

Next, I would like to discuss our sustainability initiatives. In accordance with the stated basic policy, we will
formulate mid-term sustainability targets and develop a PDCA cycle.
In order to realize our basic policy, we have identified 10 items of materiality (key issues), categorized into
proactive and defensive sustainability. Please see the material for details.

This section summarizes the SDG contribution targets by segment.

The Group will implement marketing-based management that incorporates a CSV perspective and contributeto the achievement of 11 and 9 of the 17 SDGs, in particular, “sustainable cities and communities” and“industry, innovation and infrastructure”.

To promote materiality of CSR/ESG issues, and climate change countermeasures in our business activities, wewill develop a roadmap toward carbon neutrality and conduct scenario analysis in line with TCFD
recommendations. Furthermore, we will promote efforts toward this with regard to the materiality of CSV
issues and the provision of environmentally friendly products, technologies, and services.
Regarding the enhancement of information disclosure, we will work to enhance appropriate information
disclosure and the content of disclosure, which would lead to the improvement of ratings by externalorganizations as well as inclusion in the SRI/ESG index component issues.

Next, I will explain the allocation of management resources, etc.
As a basic policy, we will prioritize the seven investments shown in the diagram as investments to achievesustainable growth and medium to long term improvement in corporate value, and then execute stable andcontinuous shareholder returns. The basic policy is to fund these resources through retained earnings andcontinuously generated cash flow. For investments in alliances and M&A to achieve discontinuous growth, wewill use the most appropriate financing, including sales of assets such as sales of strategic shareholdings, asnecessary.
Regarding the allocation of operating cash flow, we will establish a solid financial base and increase corporate
value over the medium to long term through allocations that take into consideration capital investment andshareholder returns. The distribution image for the three-year cumulative total of consolidated operating cash
flow of JPY40 billion is JPY20 billion for capital investment, JPY10 billion for dividends and share buybacks, and
JPY10 billion for reduction of interest-bearing debt.

With regard to capital investment, we will invest mainly in the machinery business, which is positioned as ourcore business, as part of our capital investment plan to support the strengthening of our manufacturing
capabilities. Of the cumulative total of JPY20 billion over the three-year period, 70% or JPY14 billion will be
invested in the machinery business.
With regard to R&D investment, we will promote commercialization of development themes that contributeto solving social issues, as well as revitalize our on-site capabilities to improve productivity. Priority issues are
as listed here.

Regarding investment in intellectual property, a system for utilizing intellectual property information toensure competitive advantage will be developed. At the same time, we will properly evaluate the value of theentire business, including intellectual property utilization, based on the technology rights of each operatingcompany in the Group. Specific priority issues are listed below.
Effective operation of the IP landscape will also be pursued so that it can begin in FY2025. As of the end of
FY2022, the Group held 590 domestic intellectual properties, 68% of which were in the field of machinery.

Regarding investment in human capital, our basic strategy is to create a rewarding company where all
employees can maximize their abilities and create new value.
In order for our group to resolve social issues through our business activities and to achieve sustainablegrowth and increase corporate value, it is essential to develop human resources with a variety of personalities.
In our human resource development policy, we will strive to develop diverse human resources who can act
autonomously and willing to take on challenges, aiming to create new value. Indicators and targets are as
described.

In terms of our in-house environment improvement policy, we are committed to creating a comfortable work
environment in which our diverse human resources can perform their duties in a rewarding, healthy, safe,and efficient manner. Indicators and targets are as described.
Regarding investment in alliances and M&A, we will consider and execute alliances and M&A with peripheralcompanies that will fill in the gaps and create continuity in the machinery business, which is positioned as ourcore business, and with companies that will become our fourth pillar of our Machinery business.

Next is about investment in DX. We will promote DX to support accelerating the Group's growth strategy andoperational reforms as our basic policy, which is to respond to market needs and support reliable andattractive manufacturing of products and value creation of services.
In April 2023, we established the DX Promotion Committee and put in place a group-wide promotion system
responsible for formulating and promoting DX strategies at the Company-wide level. In order to accelerate
efforts toward sustainable management, it is essential to expand the use of digital technology.
Under the leadership of the DX Promotion Committee, we will promote manufacturing, services and businessreforms that will lead to solutions and value creation for our customers, society, and our group, and we will
work on the use of digital technology to accelerate sustainable management.

As pillars for promoting DX, we have established three subcommittees: manufacturing, servitization, andoperational reform. We will promote cross-organizational DX deployment, as well as the development of DX
human resources and IT infrastructure, which are common issues.
The measures in the mid-term business plan 2025 and their intended effects are described below.

Page 35 describes our ROE tree for our corporate value creation for your reference.
This is the end of the presentation of the mid-term business plan 2025.

The presentation of the financial results is provided in the attached document.
To put it briefly, we forecast a slight increase in consolidated operating profit to JPY9.2 billion for the current
fiscal year, as we expect a recovery in performance and a significant increase in profits in the UNIC segment,
while profits in the metals segment are expected to decline.
In addition, we expect to record an extraordinary profit of approximately JPY13 billion from the transfer of
non-current assets announced yesterday, resulting in a significant increase in profit attributable to owners ofparent to JPY15.3 billion. The strategy for the real estate business, which will be funded by the proceeds fromthe transfer, is as explained in the previous slide, but due to confidentiality obligations, I will refrain fromexplaining the details of the plan today.
I would like to ask all of our shareholders and investors for their continued support of FURUKAWA CO., LTD.
That's all from me.

Question & Answer

Shibata [Q]: I am Shibata from the Tokai Tokyo Research Institute. As the Company develops the vision forgrowth focusing on machinery, it was a little unclear to me, about the part on page 32 of the document aboutalliances and M&A that says filling in the gap.
Can you tell us what you mean by the gap?
Also, I wonder if you could tell us whether this fourth business could be materials.
Nakatogawa [A]: In our machinery business, we have industrial machinery, rock drill, and UNIC, and forexample, rock drill segment has breakers, crushers, crawler drills, and jumbos. In places that they are used,
for example, in mines and quarries, crushers of the industrial machinery segment are also used to crush stones.
There are products in each of those places, but what connects them, or lies between them, or lies upstream
or downstream to them are called gaps. In other words, something that will provide continuity and bring more
profits. We think that such a business would be a big plus, and we call it a gap.
And for the fourth pillar is, of course, our core business is machinery, so that main target is machinery.
However, we would not exclude materials including electronics to consider investing in, if there is some tobecome another major pillar of our business.
Shibata [Q]: I would like to ask about this capital cost reduction. Perhaps one way to think about it is toterminate the metal's recent entrusted smelting contract. However, I am aware that the Company would liketo reduce volatility in such areas.
Is there room for another change in the future in metals, in view of further capital cost reduction? Or is it
more like, we'll see how things go from here on out once the structural reforms are done? I wonder if you
could provide a supplementary explanation linking this volatility in the metals segment to the cost of capital.
Nakatogawa [A]: As for the metals segment, as you can see in this material, we can expect considerable
improvement. It is certainly a volatile business, but we believe that we are seeing light now and have reached
to a certain point.
However, as I presented, we use a bubble chart to evaluate the cost of capital each fiscal term. Therefore,
depending on the product, not only metals but also other products and businesses, if it is only costing money,
we stop it, or if it should cost more, we invest more.
We think we are done with metals for now. We will review and evaluate the business along with the mid-termbusiness plan 2025.